Week 1: Net-worth
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How do you kno9w if you are heading in the right direction or not if you don't know where you are? Most people can not answer with any degree of accuracy what their net-worth is or even what should be included or not.
This week Join Katie and Alan as they explore tracking your finances, what to measure, assets and liabilities and other core personal finance principles that are going to set us up for a bright financial future. Welcome to week 1 of Rebel Finance School. |
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The main thing we want you to get out of week 1 is the importance of tracking your net worth. Check out my how much are you worth blog post. The blog post includes a spreadsheet template that you can download and fill in.
To get the most out of this course you must do the homework! The most dangerous words when you're learning something are "I know that". None of this is rocket science. You might know this but are you actually doing it?! Are you implementing?
Remember too that getting wealthy is not a get rich quick kinda thing. This will take time! Each step might take you months or years. We are in this for the long haul and we will help you through it. Stick with the course over the coming weeks, we've designed it to build as we go. Trust in the process! We can climb this mountain together and we'll be with you every step of the way.
So here is the homework for week 1...
Optional additional homework
3. Work out how much you've earned over your lifetime. We've created a template to help you do this. Click here for the template. If you're in the US you can get this info really easily at the social security website.
4. Compare 2. (your net-worth) and 3. (your lifetime earnings). How much of what you've earned have you kept? Warning: this may bring up some emotion!
5. Discuss what you've discovered with your partner/family/friends or tell us in the Facebook group
Some questions to ask yourself
Direction and tracking net-worth
•What direction are your finances heading in?
•How do you feel about your financial direction?
•What do you think the main benefit of tracking net-worth is for you?
Gap between earning and spending
•Do you have an emergency fund?
•Have you had times where the car/washing machine broke down and you were scrambling for money?
•Do you have a gap between your income and expenditure?
•Is there money left over at the end of the month? If so, what do you do with it?
Ask for help
Remember to reach out in the Facebook group with any questions you have or if you get stuck. Don't let confusion be an excuse for not progressing with this stuff. We are here to support you!
To get the most out of this course you must do the homework! The most dangerous words when you're learning something are "I know that". None of this is rocket science. You might know this but are you actually doing it?! Are you implementing?
Remember too that getting wealthy is not a get rich quick kinda thing. This will take time! Each step might take you months or years. We are in this for the long haul and we will help you through it. Stick with the course over the coming weeks, we've designed it to build as we go. Trust in the process! We can climb this mountain together and we'll be with you every step of the way.
So here is the homework for week 1...
- Open a savings account for your emergency fund if you don't already have one. Start putting money into it! Initial aim is to put £1,000 in (or whatever the equivalent of this in your currency). Start where you are, this might be £5 or $5 a month to begin with.
- Calculate your net-worth using the net-worth tracker template. If you already have your own template you don't have to use ours. The important thing is doing it! Alan's how much are you worth blog post has the template in it
Optional additional homework
3. Work out how much you've earned over your lifetime. We've created a template to help you do this. Click here for the template. If you're in the US you can get this info really easily at the social security website.
4. Compare 2. (your net-worth) and 3. (your lifetime earnings). How much of what you've earned have you kept? Warning: this may bring up some emotion!
5. Discuss what you've discovered with your partner/family/friends or tell us in the Facebook group
Some questions to ask yourself
Direction and tracking net-worth
•What direction are your finances heading in?
•How do you feel about your financial direction?
•What do you think the main benefit of tracking net-worth is for you?
Gap between earning and spending
•Do you have an emergency fund?
•Have you had times where the car/washing machine broke down and you were scrambling for money?
•Do you have a gap between your income and expenditure?
•Is there money left over at the end of the month? If so, what do you do with it?
Ask for help
Remember to reach out in the Facebook group with any questions you have or if you get stuck. Don't let confusion be an excuse for not progressing with this stuff. We are here to support you!
